There are times when you need immediate funds but don’t have sufficient savings. During such times, a personal loan comes in handy. Since personal loans are unsecured, they do not require you to maintain collateral. They are extended solely on your credit history and ability to repay the loan. A personal loan can help you deal with anything, from financing your wedding to renovating your house.
This article guides you through the entire process which is required of applying for a personal loan. It also throws light on a few tips to ensure your loan application gets approved without any hassles.
Have a look on complete step by step process to get personal loans -
Step 1 – Determine your requirements
The very first step is to identify your needs. Determine the loan amount you need and the reason for it. The amount you decide to borrow should be based on your current income and repayment ability. Banks and other financial institutions determine your repayment ability before deciding your loan application. Moreover, acquiring an amount higher than your capability to repay can be burdensome. Therefore, it is essential to calculate the debt you can manage considering your income and monthly expenses.
Step 2 – Compare your options
Before you apply for a loan, it is a good idea to research thoroughly and compare all the options. You may want to check interest rates, loan terms, fee, and payment options before choosing a lender. Select an option that is the most desirable and meets your needs. Avoid making multiple loan applications in a short span as lenders are wary of various loan applications and that could affect your credit score.
Step 3 – Check loan eligibility
To qualify for a personal loan, you have to meet specific eligibility requirements. Pre-ensuring your eligibility doubles your chances of getting loan approval and saves your time. While the eligibility criteria can differ from lender to lender, some common eligibility conditions are:
● Credit score- Your credit score reflects your credit history and determines your creditworthiness. A credit score of 750 or more is considered ideal for personal loan approval. Before applying for a loan, look into your credit score. If your credit score is low, you can make efforts to increase it by clearing outstanding debts, preventing overuse of credit cards, and making payments of EMIs on time.
● Income- Every lender has predefined minimum income requirements to qualify for a loan. It is advisable to check the requirements before making an application to avoid rejection.
● Age- To qualify for a personal loan, you need to be at least 21 years old and not more than 60 years. Lenders set an age limit to receive assurance on loan recoverability.
Step 4 – Complete the application
The application process for a personal loan differs from lender to lender. You can know about documents required to go along with the application form. Generally, lenders need income proof, address proof, and identity proof.
Conclusion: You can use the step-by-step guidelines mentioned above to get instant approval on your personal loan. All you need to do is prove your repayment ability, ensure you meet all the eligibility requirements, and have a good credit score before making an application. These steps can ensure you an instant loan approval.
If you need financial assistance, you may look at personal loan from Bajaj Finserv, an online app. You can avail an instant loan up to Rs. 25 lakhs with a flexible repayment tenure between 12 to 60 months. Moreover, with Bajaj Finserv online loan app, the entire process of availing a loan becomes a hassle-free experience, making it one of the best loan apps in India.